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U.S. Could Expand Apple Exports to Japan
Barry
Krissoff
Linda
Calvin
The World Trade Organization (WTO) recently ruled that part of
Japan’s phytosanitary protocol for imports of U.S. apples
was not justified and was in breach of Japan’s WTO obligations.
The Japanese phytosanitary protocol for apples included restrictive
rules for inspection, buffer zones, and chemical surface disinfection,
procedures that are not normally part of the standard U.S. industry
operating practices for apples. The United States is a major apple
exporter with sales to 85 countries in 2004. Many countries accept
U.S. apples produced under the standard U.S. industry operating
practices with the addition of a phytosanitary certificate asserting
that the packed apples have been inspected and are free of diseases
or pests of concern. Other countries only accept U.S. apples grown
with additional production or postharvest practices. Some of these
additional practices can be quite costly.
With strict phytosanitary rules severely restricting apple imports,
Japan has relied on its domestic production to satisfy consumer
demand. Japanese apple prices tend to be high, and per capita apple
consumption is among the lowest in developed economies, 5.9 kilograms
(13 pounds) a year between 1991 and 2003. That was 73 percent of
average U.S. per capita consumption—8.1 kilograms (18 pounds)—and
less than one-third of the 17.9 kilograms (39 pounds) consumed on
average in the European Union. Japanese consumers often eat apples
as a dessert, with one apple, often a Fuji apple, divided among
several diners. They do not tend to eat them as snacks as do U.S.
consumers. However, Japanese tastes may not be static. Japanese
consumers may be open to U.S. sweet apple varieties or even traditional
tart apples, and U.S. growers might be able to build a Japanese
market over time.
On August 25, 2005, Japan issued new regulations eliminating the
procedures that were the subject of the U.S. complaint. As a result,
U.S. growers could have new opportunities to supply the Japanese
market. Using an economic model of the Japanese apple market, ERS
has estimated what Japanese imports would have been without the
restrictive phytosanitary protocol. The analysis gives an indication
of the longrun potential of U.S. apple sales to Japan. It suggests
that, with the elimination of the protocol, Japanese consumers would
increase their per capita consumption of apples by about 11 percent
to 6.4 kilograms, still below U.S. per capita consumption. The additional
imports would significantly affect the U.S. apple industry.
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